New York City Nonprofits Face Cuts Despite Mayor’s Optimism

NEW YORK—New York City Mayor Michael Bloomberg considers himself lucky: With tourism high, unemployment leveling off, and business-tax revenues growing, Mr. Bloomberg boasted last month that the city is in a “stronger position” than most urban areas and that his budget would be less austere than those drafted by colleagues.

Still, the city must close a $4.6-billion gap. The mayor has proposed stopping payments for nearly 17,000 day-care slots for low-income working parents–some of the $515-million that could be lost to human-service groups, said Allison Sesso, deputy executive director of the Human Services Council of New York City, which represents thousands of the city’s nonprofits.

Nearly every one of the 380 child-care providers that contract with the city would lose city money, said Andrea Anthony, executive director of the Day Care Council of New York, a membership organization. That would include nonprofit care centers but also private operators who care for children in homes. Money that pays to care for more than 700 children would vanish by April and the rest in September.

Parents qualify for child-care vouchers if they work or are in school and meet certain federal poverty guidelines. The proposed reduction of 16,600 slots would follow cuts that have taken away child-care support for 14,000 children since 2006, Ms. Sesso says. “It’s low-income mothers who need the subsidy for child care,’’ she said. “It’s helping people to stay in jobs.’’

Some parents would be forced to decide if working to pay for child care was worth the wages earned, she said.

Mr. Bloomberg has promised to close the city’s budget deficit without tax hikes or draconian cuts. His plan leans on the state’s largesse, whose financial picture is far worse, for education aid and savings from pension overhauls.

“We don’t deserve to be penalized for our responsible management,” the mayor said in a budget statement in February. “If the state does not come through, layoffs and service cuts will be more severe.’’

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